The global financial crisis has turned the world order upside down. Contemplating the events since 2008, a famous hedge fund
manager (one of the handful who correctly predicted the subprime crisis) told me recently that “we, the Western world, basically have
become what the emerging markets used to be”. And where are the emerging markets – here: Brazil – today?
Brazil has learned from mistakes made in the past and successfully turned around the country. By all means, Brazil is a success story, a
creditor on foreign currency basis boasted by strong balance sheets on corporate and government level. With growth at probably 6.5%
to 7.00% and debt to GDP around 45%, the country is in much better shape than the majority of developed economies.
The Brazilian asset management and financial industries are stable and very well regulated. Brazilian funds and their investors did not
suffer from the deadly mismatch between assets and liabilities that was very common for funds in other jurisdictions. Out of 5,000
local Brazilian local hedge funds (multi mercado funds) and 120 offshore hedge funds, only two or three, mainly very small, ran into
problems. Contrast that what happened in the U.S. or with other global hedge funds.
Brazilian hedge funds are audited, publish their NAV every day and have segregation of functions between management,
administration, and custodian. The local Investment Bank Association has started a project that aims to make Brazil a global financial
center and formed a new association called BRAiN.
Brazil's capital markets evolve in great strides, already now its exchange is the fifth largest in the world - in 2008, Brazil was #3 in IPO
volumes globally. During the recent financial crisis, the country did not suffer any bankruptcies or government interventions like most
Western countries. This Roundtable further covers:
Background on the Brazilian corporates and the many opportunities there
Who is now investing in Brazil
Opportunities in the primary markets - R$35 billion IPO volumes already lined up at realistic valuations
Infrastructure of the Brazilian market, and why global players like BlackRock, Franklin Templeton are now moving in
The evolution of Brazil from a value to a growth proposition.
The 2010 Brazil Roundtable was sponsored by SunGard Alternative Investments (www.sungard.com/alternatives) and united the following experts:
Otávio Vieira, Director of Investments and Head of Fund Advisory Services, Safdie Group
George Wachsmann, Founding Partner of BAWM Investments
Patrick de Picciotto, Partner, M Square
Mauro Rodrigues da Cunha, Head of Equities and Portfolio Manager, Maua Investimentos
André Lion, Partner, Head of Equities Strategy, BRZ Investimentos
André Ribeiro, Partner, Brasil Capital
Thomas Souza, Founding Partner of AguasClaras Investimentos
Julie Rice, Managing Director, SunGard Alternative Investments
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